Pressure Piles On Diageo As Senator Gittens Express Alarm At ‘Possible Breach Of Contract’

ST. CROIX — Senator Kenneth Gittens on Thursday said he has become very concerned about discrepancies in the molasses import records of Diageo USVI, as he awaits the results of tests conducted as a part of an investigation done by the Government of the Virgin Islands. The investigation was first brought to light through a Consortium report, working on a tip the publication received from a source with inside knowledge of the probe.

Also on Thursday, Senator Kurt Vialet called for a full investigation into Diageo USVI, advising Acting Attorney General Claude Walker to subpoena all bill of ladings in reference to molasses shipments to determine the contents of containers shipped for the past five years.

“I’ve been made to understand that earlier this week, an investigation was launched into the contents of a number of Diageo’s tanks,” Mr. Gittens said. “That investigation was a result of a complaint to the Department of Licensing and Consumer Affairs about conflicting information in the bill of lading and the form used when the excise tax is paid. Now, if one document said the tanks contained molasses and another document said it contained rum – we certainly have a problem.”

The senator also said a collaborative investigation between the Department of Licensing & Consumers Affairs and the V.I. Department of Justice is moving forward while the contents of the tanks are being tested. He said as far as he is concerned, any substance other than molasses that is being imported by Diageo USVI may constitute a breach of contract and should be grounds for the reopening of negotiating terms of the company’s 30-year operating agreement with the Government of the Virgin Islands. And Mr. Gittens said Diageo’s explanation issued to the press did not adequately address his concerns since learning about the investigation.

“I have read in the local papers that Diageo USVI has explained that the contents are a ‘sugarcane intermediate’ which is a part of a new distilling process experiment. But if that’s the case, it is still not molasses, as is called for in the agreement for molasses subsidies from the territory,” the second-term Democrat said.

Mr. Gittens added that while the matter is being investigated, he urges the administration to keep a close eye on the matter and begin to strategize — echoing sentiments shared by Mr. Vialet, who said that Governor Kenneth Mapp should be vigilant in the pursuit of information, while encouraging Diageo to fully cooperate.

“I am making a plea to the administration to be assertive in their investigation, and if there is any violation of the agreement, then I would strongly urge them to be aggressive in opening up renegotiations with the company,” Mr. Gittens said. “The Government needs to especially revisit the molasses subsidies which we have been paying to Diageo USVI from our Rum CoverOver funds. This matter has potential to be destructive or fruitful for our territory – so we must be vigilant in our actions.”